Botswana Meat Commission (BMC), plans to invest over P300 million in two projects aimed at developing the beef value chain, according to Chief Operating Officer (COO) Brian Dioka.
The abattoir said it is waiting for the commencement of the 2023/2024 financial year in April to invest P346 million in the construction of the “state of the art” Meat Value Addition and Secondary Processing Plant and a Tannery.
“Government has approved P230 million for the construction of this plant at Lobatse. This plant is expected to be completed in the next 12 to 18 months,” Dioka revealed, accompanied by his Chief Finance Officer (CFO), Mmabasotho Tibe.
Dioka said the plant will be strategically located in Lobatse to leverage the benefits of the Special Economic Zone (SEZ) in the area. He further emphasised that proximity to the BMC Abattoir will enable the utilisation of economies of scale from the main plant. The new facility is poised to add significant value to meat products, with a range of processed items such as ham, hotdogs, salami, polony, bacon, and sausages slated for production. Dioka and Tibe underscored that processed meats, preserved through methods like smoking, curing, or salting, and with the addition of preservatives, not only enhance flavor but also improve preservation and overall value.
Presently, BMC does not engage in meat processing, with only Senn Foods, partly owned by a South African company, involved in such activities. Botswana relies on imports from South Africa for other processed meat products.
The two are excited that the Meat Value Addition & Secondary Processing Plant will improve the economic profile of Lobatse.
“Economic opportunities will be abundant. Companies will have to supply the plant with several inputs needed in processing meat,” said Dioka, adding further that independent beef traders like butcheries will have to supply the plant with inputs and make money in the process.
Furthermore, BMC, renowned as a top-tier niche beef supplier, exclusively procures the highest grades of cattle tailored to meet the standards of its key markets, including the European Union, United Arab Emirates, and numerous others. Cattle deemed unsuitable for the stringent requirements of the EU market will now be purchased and processed at the meat processing plant.
“Mind you, we will be buying the cattle at a higher price because the meat will be processed. The primary cattle owner here will be the biggest beneficiary,” he said. BMC produces only canned beef branded Ecco. Dioka said the product is currently being produced only for the local market because its plant is non-EU compliant.
“After we complete this state-of-the-art plant, Ecco canned beef and other processed products will be eligible for export to the EU (and other markets) because the plant will be new, compact, scalable and EU compliant,” he explained.
He further said the plant will buy directly from farmers, even in disease-prone areas like Ngamiland.
It does not end there, Dioka revealed also that the government has decided for BMC to be included in the Lobatse Leather Park project in partnership with the Local Enterprise Authority.
They believe that as the primary source of cattle hides, BMC can act as an enabler for the leather park.
“As a result, government has approved a further P116 million for BMC to invest in the leather park. We will no longer be exporting cattle raw materials. We want to export everything as value-added finished goods. “ According to Tibe, the Tannery has the potential to pump in over P30 million monthly into the BMC.
